Posted by DigiNomad on 18th of May 2023 at 02:45 pm
Borrowing more and printing money are not the same thing. Two
different balance sheets in play - Fed and Treasury. It's easy to
conflate the two, but not accurate.
Gold does not rise because more money has been printed. Gold
does not rise when confidence in USD is present as a store of
value. Rising inflation will change that!
The difference is due to international buyers of debt. High
yield on USD attracts international buyers. With gold, the dynamic
is the opposite: Western Central Bank need to buy gold even more
than the rest of the world. Are they buying it yet? That is the
question. They are not selling because they have already sold
everything they could.
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Borrowing more and printing money
NQ futures 52 week high...Bears convinced yet ?
Posted by DigiNomad on 18th of May 2023 at 02:45 pm
Borrowing more and printing money are not the same thing. Two different balance sheets in play - Fed and Treasury. It's easy to conflate the two, but not accurate.
QE wouldn't be a thing
Posted by DigiNomad on 18th of May 2023 at 03:03 pm
QE wouldn't be a thing if borrowing and money printing were synonymous.
Gold does not rise because
Posted by junkie on 18th of May 2023 at 03:14 pm
Gold does not rise because more money has been printed. Gold does not rise when confidence in USD is present as a store of value. Rising inflation will change that!
The difference is due to
Posted by junkie on 18th of May 2023 at 02:57 pm
The difference is due to international buyers of debt. High yield on USD attracts international buyers. With gold, the dynamic is the opposite: Western Central Bank need to buy gold even more than the rest of the world. Are they buying it yet? That is the question. They are not selling because they have already sold everything they could.